WashingtonCharacter.AI’s bankruptcy sale could include chats of millions of users.
The US Justice Department’s bankruptcy office says the chats are often sensitive and sometimes involve minors.
The company’s privacy policy permits transferring personal data in a sale, and it changed on 1 July while Character sought buyers.
Character’s chatbot tells users their conversations stay private, the filing says.
The bankruptcy judge can restrict or block the sale of user data.
How each outlet framed it
- The Record leans critical
- reports the DOJ's push for a privacy ombudsman, framing user chats as sellable assets under bankruptcy, with 12M monthly users and a quoted 'not without your explicit permission' promise
Sources: The Record